Why Every SME’s CRM Needs Power BI6 min read
A Background to CRM
Customer Relationship Management (CRM) systems were developed to provide organisations with a structured way to record, manage, and analyse their interactions with customers and prospects. At a fundamental level, a CRM system acts as a central repository for customer-related data, capturing information about individuals, organisations, sales activity, and commercial outcomes.
With modern CRM platforms, the data is hosted in cloud-based databases managed by the software provider. In Microsoft’s ecosystem this underlying data layer is known as Dataverse, which supports applications such as Dynamics 365 and the Power Platform.
While CRM systems are effective at capturing data, they are not inherently designed to interpret it. As a result, organisations often struggle to translate operational data into an understanding of performance, trends, and outcomes.
What is Power BI?
Power BI is a piece of software that attaches on top of Dynamics 365. It is Microsoft’s business intelligence and analytics platform.
Power BI connects directly to structured data sources and allows users to model, analyse, and visualise information. It provides a graphical interface for building reports and dashboards, enabling users to explore data without requiring traditional programming skills, while still supporting advanced analysis where required.
As part of the Microsoft Power Platform, Power BI is designed to work seamlessly with other Power tools, sharing data models, security, and governance.
What is it Used for and how Does it Work?
A company’s information is all stored within their CRM but there is nothing to generate reports from that information. This is where Power BI comes in.
In a CRM context, its primary purpose is to make customer and sales data understandable and usable by decision-makers. Power BI is used to identify patterns, trends, and relationships within CRM data that are not apparent from individual records or operational screens. Rather than focusing on single leads, opportunities, or accounts, it enables organisations to assess performance at scale and over time.
Technically, Power BI works by connecting to one or more data sources and interpreting the relationships between tables. In a CRM environment, this typically involves combining data from entities such as contacts, organisations, leads, opportunities, orders, and invoices. You select which elements from each table you would like to show and, once connected, the data can be transformed, aggregated, and analysed to support specific business questions.
The results are presented through visual elements such as charts, tables, and trend lines. These visualisations are not merely aesthetic, they are designed to help users recognise patterns quickly and understand how different aspects of the business relate to one another. In effect, Power BI translates complex data structures into narratives that support insight and action.
How is Power BI Integrated with CRM?
Power BI integrates closely with Microsoft CRM systems because both rely on the same underlying data and security architecture. When you sign up for a license with Microsoft you are able to connect to Power BI automatically.
Reports can be embedded directly within CRM interfaces, allowing users to view insights in the context of their daily work rather than in a separate reporting application. Power BI can also combine CRM data with information from external systems, enabling cross-platform analysis and a more comprehensive view of business performance.
In addition, reports can be shared with internal and external stakeholders, embedded within portals or websites, and refreshed automatically on a defined schedule. This flexibility allows Power BI to extend CRM insight beyond internal teams and into partner or customer-facing environments where appropriate.
Advantages and Limitations
When implemented effectively, Power BI significantly increases the value of CRM data. It enables organisations to move beyond operational reporting and towards evidence-based decision-making. All without the requirement of coding.
Trends become visible, performance differences between regions or teams can be assessed objectively, and issues within sales or customer lifecycles can be identified early.
Another great benefit of Power BI is that it isn't linked only to Microsoft. It can be connected with any CRM system, bringing disparate systems together.
However, Power BI also introduces risk. Reports can appear authoritative and so errors in data modelling or metric definition can lead to incorrect conclusions. The platform assumes a level of data literacy, particularly an understanding of how CRM data is structured and related. Without this understanding, even well-intentioned analysis can be misleading.
Power BI also exposes weaknesses in underlying data quality. Incomplete, inconsistent, or poorly governed CRM data will surface quickly once reporting begins. While this can be uncomfortable, it is often a necessary step towards improving data discipline.
How can you Ensure Effective Use?
Effective use of Power BI requires clear governance. Organisations must define ownership of reports, agree on metric definitions, and control how insights are distributed. Inconsistent definitions of key measures such as revenue, pipeline, or customer value can undermine trust and reduce confidence in reporting.
For this reason, many organisations limit report creation to a small number of trained individuals, focusing on consistency and accuracy rather than unrestricted self-service. Training internal teams to understand both the data and the reporting tools is often more sustainable than outsourcing reporting entirely.
Although Power BI is frequently discussed during CRM planning, it is often implemented after the core system has been in use for some time. This reflects a practical reality: meaningful reporting depends on reliable data and stable processes. Power BI is most effective when it builds on a mature CRM foundation.
The Strategic Role of Power BI in CRM
Power BI’s true value lies in its role as the interpretive layer of CRM. While CRM systems document what has happened, Power BI helps organisations understand why it happened and what should happen next.
Used thoughtfully, it transforms CRM from a system of record into a system of insight. Used carelessly, it risks providing confident answers to poorly framed questions. The distinction depends not on the technology itself, but on the clarity of purpose, governance, and analytical thinking applied to it.
When used well, Power BI turns CRM from a system of record into a system of insight, enabling organisations to act with greater confidence and purpose.